The qualitative characteristics describe the attributes that enhance the usefulness of financial reporting information.The FASB's conceptual framework sets forth the qualitative characteristic of _____ that refers to financial reporting that treats similar items the same way and different items differently.Consistency refers to financial reporting that treats an item the same way over time.
A)relevance
B)reliability
C)comparability
D)materiality
E)understandability

Question

Quizplus · Accepted Answer

The qualitative characteristic described in the question is comparability, which refers to financial reporting that treats similar items the same way and different items differently. Choice A (relevance) refers to financial reporting that is capable of making a difference in the decision making of users. Choice B (reliability) refers to financial reporting that is free from errors and bias and is able to be depended on by users. Choice D (materiality) refers to the relative importance of an item or event to the financial statements. Choice E (understandability) refers to financial reporting that is clear and easily comprehensible by users.

The Qualitative Characteristics Describe the Attributes That Enhance the Usefulness